Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy.

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our Privacy Policy and User Agreement for details.

Dup global human-capital-trends-2017

2.
COVER AND CHAPTER ILLUSTRATIONS BY LUCIE RICE
Start exploring with an
augmented reality journey
Get a new perspective on the 10 Global Human
Capital Trends for 2017 by downloading the free
Aurasma app from your preferred app store.
Once you have downloaded the app, launch
your AR journey by holding your tablet or phone
over the report cover.

3.
Deloitte’s Human Capital professionals leverage research,
analytics, and industry insights to help design and
execute the HR, talent, leadership, organization, and
change programs that enable business performance
through people performance. Visit the Human
Capital area of www.deloitte.com to learn more.

4.
Rewriting the rules for the digital age
PREFACE
W
ELCOME to Deloitte’s fifth annual Global Human Capital Trends report and survey. This year’s
report takes stock of the challenges ahead for business and HR leaders in a dramatically changing
digital, economic, demographic, and social landscape. In an age of disruption, business and HR
leaders are being pressed to rewrite the rules for how they organize, recruit, develop, manage, and engage the
21st-century workforce.
This workforce is changing. It’s more digital, more global, diverse, automation-savvy, and social media-
proficient. At the same time, business expectations, needs, and demands are evolving faster than ever before.
While some view this as a challenge, we see it as an opportunity. An opportunity to reimagine HR, talent, and
organizational practices. An opportunity to create platforms, processes, and tools that will continue to evolve
and sustain their value over time. An opportunity to take the lead in what will likely be among the most signifi-
cant changes to the workforce that we have seen.
Hence, our call for new rules for HR in the digital age.
The 2017 report began last summer with us reaching out to hundreds of organizations, academics, and practi-
tioners around the world. This year, it includes a survey of more than 10,000 HR and business leaders across
140 countries. The report reveals how leaders are turning to new organizational models that highlight the
networked nature of today’s world of work; innovation-based HR platforms; learning and career programs
driven by social and cognitive technologies; and employee experience strategies that put the workforce at the
center. The report closes with a discussion of the future of work amid the changes being driven by advances in
automation and an expanded definition of the workforce.
We are pleased to present this year’s Global Human Capital Trends report and survey and look forward to
your comments. 2017 is positioned to be a year of change as we all manage new levels of transformation and
disruption. The only question now is: Are you ready?
Brett Walsh
Global leader, Human Capital
Deloitte LLP
Erica Volini
US leader, Human Capital
Deloitte Consulting LLP

6.
Rewriting the rules for the digital age
The 2017 Deloitte Global Human Capital Trends
of business. This new era, often called
the Fourth Industrial Revolution1
—or, as
we have earlier labeled it, the Big Shift2
—
has fundamentally transformed busi-
ness, the broader economy, and society.
W
E Rewriting the
rules for the digital age -
-
-
-
-
-
-
-
-
Forces for change driven
by the digital revolution
-
Introduction
Rewriting the rules for the digital age

9.
OUR GLOBAL RESEARCH
The 2017 survey is our largest and most extensive to date, with input from more
than 10,400 business and HR leaders across 140 countries. Twenty-two percent of
respondents were from large companies (more than 10,000 employees), 29 percent
from medium-sized companies (1,000–10,000 employees), and 49 percent from
small companies (fewer than 1,000 employees). Respondents from the Americas
accounted for 31 percent of the total; Europe, Middle East, and Africa contributed 51
telecommunications; and manufacturing. Sixty-three percent of the respondents
were HR professionals, with other business executives comprising 37 percent. C-level
executives accounted for 30 percent (more than 3,100) of the respondents.
The appendix contains additional details on respondent demographics.
RAPID AND DISRUPTIVE
CHANGE IS NOT NEW
-
-
-
-
-
-
-
The 10 human capital trends
-
TREND 1. THE ORGANIZATION OF
THE FUTURE: ARRIVING NOW
-
-
-
actively building
-
2017 Deloitte Global Human Capital Trends

12.
Rewriting the rules for the digital age
Deloitte University Press | dupress.deloitte.com
How we redesign the organization and
its leadership for the future
TREND 1
The organization
of the future:
Arriving now
TREND 6
Leadership
disrupted: Pushing
the boundaries
How we build a new management
system to empower and engage the
teams
TREND 5
Performance
management: Play a
winning hand
TREND 9
Diversity and
inclusion: The reality
gap
How we design the employee
experience for engagement,
productivity, and growth
TREND 4
The employee
experience: Culture,
engagement, and
beyond
How we build a culture of continuous
learning, adaptability, growth, and
personal development
How we leverage digital technology to
design and improve work, the workplace,
and the workforce
How we leverage data, cognitive
technologies, and AI to improve the
organization and its teams
TREND 3
Talent acquisition:
Enter the cognitive
recruiter
TREND 8
People analytics:
Recalculating the
route
n
TREND 7
Digital HR:
Platforms, people,
and work
TREND 10
The future of work:
The augmented
workforce
Figure 4. Rewriting the rules for the digital age
2017 Deloitte Human Capital Trends
ms
T
Pe
m
wwwwwwwwwwwww
TREND 2
Careers and
learning: Real time,
all the time
rce
e,
T
TTT
E
r
TTT
PPP
RRR
ro

20.
Rewriting the rules for the digital age
Josh Bersin, Bersin by Deloitte, Deloitte Consulting LLP | jbersin@deloitte.com
Josh Bersin founded Bersin & Associates, now Bersin by Deloitte, in 2001 to provide research
and advisory services focused on corporate learning. He is a frequent speaker at industry
events and a popular blogger. Bersin spent 25 years in product development, product
management, marketing, and sales of e-learning and other enterprise technologies. He has
a BS in engineering from Cornell, an MS in engineering from Stanford, and an MBA from the
Haas School of Business at the University of California, Berkeley.
Bill Pelster, Deloitte Consulting LLP | bpelster@deloitte.com
Bill Pelster has more than 25 years of industry and consulting experience. In his current role,
Pelster is responsible for leading the Bersin by Deloitte Research and Products practice and
is a senior advisor to the Integrated Talent Management practice. A well-respected speaker
and author, he has recently led, supported, or authored key research pieces including Talent
2020, Global Human Capital Trends, and The Leadership Premium. In his previous role as
of Deloitte professionals, and was one of the key architects of Deloitte University, Deloitte’s
$300 million learning facility outside Dallas. Pelster is a former US board member for Deloitte
Consulting LLP.
is an advisor to senior business leaders in global companies, focusing on organization, HR,
Tech Terminal (ITT) connecting US and global companies with the Israeli start-up ecosystem.
He is a frequent speaker and writer on issues at the nexus of talent, human resources, global
business challenges, and the “future of work.” In 2011, Schwartz led the launch of Deloitte’s
Global Human Capital Trends survey and report series and continues to serve as one of the
executive editors.
Bernard van der Vyver, Deloitte Consulting BV | bevandervyver@deloitte.com
Bernard van der Vyver is a leading advisor on human capital matters, focusing on learning
the development of people, van der Vyver brings a unique strength to the HR domain. As
Deloitte’s global Learning Solutions leader, he aspires to grow and strengthen the global
learning community by leveraging the organization’s knowledge and expertise to deliver
learning solutions that create unique value for clients.
CONTRIBUTORS
David Mallon, Julie May, Jen Stempel
AUTHORS

22.
High-performing organizations operate as empowered networks, coordinated
through culture, information systems, and talent mobility. Companies are focused on
redesigning the organization itself, with nearly half actively studying and developing
new models. And many organizations are not only designing but also building this
new organization. As networks and ecosystems replace organizational hierarchies,
the traditional question “For whom do you work?” has been replaced by “With whom
do you work?”
• -
zation of the future is an important or very important issue.
•
increase from last year.
• Yet challenges remain: Only 11 percent of survey respondents believe they under-
stand how to build the organization of the future.
The organization of the future
Arriving now
W
HY
-
Global Human Capital
Trends
-
-
-
-
2017 Deloitte Global Human Capital Trends

25.
Rewriting the rules for the digital age
-
-
2
-
NEXT STEP: BUILDING THE
ORGANIZATION OF THE FUTURE
-
-
Global
Human Capital Trends
-
3
-
-
-
-
-
Among this year’s
survey respondents,
32 percent say that
they are now designing
their organization to
be more adaptable
and team-centric.

28.
Old rules New rules
Organized for learning, innovation, and customer
impact
Company viewed as a hierarchy, with hierarchical
decision rights, structure, and leadership progression
Company viewed as an agile network, empowered
by team leaders and fueled by collaboration and
knowledge-sharing
Structure based on business function with functional
leaders and global functional groups
Structure based on work and projects, with teams
focused on products, customers, and services
Advancement through promotion upward with many
levels to progress through
Advancement through many assignments, diverse
experiences, and multifunctional leadership
assignments
People “become leaders” through promotion
authority
Lead by direction Lead by orchestration
Culture ruled by fear of failure and perceptions of
others
Culture of safety, abundance, and importance of risk-
taking and innovation
Rules-based Playbook-based
and job titles change regularly
Process-based Project-based
FAST FORWARD
As this new type of organization takes hold, working in teams will likely become the
norm in business, and dynamism will become an organizational hallmark. Building and
from teaming may also become standard.
to build their careers, while companies that continue to operate in the old manner
will likely struggle to keep up. In this new world, more nimble organizations will have
certain advantages, but successful large organizations will keep pace by building
stronger ecosystems and partnerships that broaden their workforces and capabilities.
2017 Deloitte Global Human Capital Trends

30.
Josh Bersin, Bersin by Deloitte, Deloitte Consulting LLP | jbersin@deloitte.com
Josh Bersin founded Bersin & Associates, now Bersin by Deloitte, in 2001 to provide research
and advisory services focused on corporate learning. He is a frequent speaker at industry
events and a popular blogger. Bersin spent 25 years in product development, product
management, marketing, and sales of e-learning and other enterprise technologies. He has
a BS in engineering from Cornell, an MS in engineering from Stanford, and an MBA from the
Haas School of Business at the University of California, Berkeley.
tmcdowell@deloitte.com
years of business and consulting experience, delivering operating model, organization design,
talent strategy, decision optimization, and change management solutions. Her focus is on
McDowell holds an MBA and a doctorate in industrial/organizational psychology.
Amir Rahnema, Deloitte Canada | arahnema@deloitte.com
Amir Rahnema is Deloitte’s global leader for Organization Design services. He focuses
on working with both private- and public-sector clients to drive large-scale organizational
technology implementations, and complex workforce transitions. His work has spanned
reorganizations in numerous industries, including banks, regulatory agencies, consumer
Yves van Durme, Deloitte Consulting | yvandurme@deloitte.com
Yves van Durme is a partner with Deloitte’s Belgian consulting practice and the global leader
of Deloitte’s Strategic Change practice. He specializes in leadership and organizational
development and talent and HR strategy in business transformation contexts. Van Durme
has nearly 20 years of experience as a consultant, project manager, and program developer
multinationals, family businesses, and small and medium enterprises. His experience
organizational development work, focusing on the balance between processes, structures,
and systems on the one hand and cultural and people-related elements on the other.
CONTRIBUTORS
Garth Andrus, David Mallon, Phil Neal
AUTHORS
2017 Deloitte Global Human Capital Trends

32.
The concept of career is being shaken to its core. Employees now enjoy the prospect
of 60-year careers. Yet at the same time, the half-life of skills is rapidly falling. These
new realities are forcing companies to rethink the way they manage careers and
deliver always-on learning and development (L&D) opportunities. Leading companies
are moving to overhaul their career models and L&D infrastructure for the digital age,
though most organizations are still in the early stages of this transformation.
• This year, the issue of improving employee careers and transforming corporate
last year.
• Learning technology is changing rapidly. Traditional learning management systems
are being complemented with and replaced by a wide range of new technologies
for content curation, delivery, video distribution, and mobile use.
• This upheaval in learning and careers has become a catalyst for radical change.
Nearly half of our surveyed executives (45 percent) cite this problem as urgent or
dropped by 5 percent.
Careers and learning
Real time, all the time
W
HAT - WHAT EMPLOYEES EXPECT
FROM THE 100-YEAR LIFE1
-
-
2
-
3
2017 Deloitte Global Human Capital Trends

33.
Rewriting the rules for the digital age
-
-
-
4
The 100-Year Life
-
5
-
-
-
-
THE NEED FOR RAPID SKILL
DEVELOPMENT AND THE
COMMODITIZATION OF CONTENT
-
-
-
-
Companies worldwide are scrambling to
catch up with employees’ desires.
Deloitte University Press | dupress.deloitte.com
Length of career Average tenure in a job Half-life of a learned skill
60 to 70 years 4.5 years 5 years
Figure 1. The changing nature of a career
Sources: Lynda Gratton and Andrew Scott, The 100-Year Life: Living and Working in an Age of Longevity (Bloomsbury, 2016); Douglas
Thomas and John Seely Brown, A New Culture of Learning: Cultivating the Imagination for a World of Constant Change (CreateSpace,
January 4, 2011).

37.
Rewriting the rules for the digital age
FAST FORWARD
The impact of the fourth industrial revolution is fundamentally changing the nature
of work and the meaning of career, and making it imperative to constantly refresh
create the environment and systems to allow employees to constantly learn and
relearn. The explosion of free content means that the learning organization should
seamlessly integrate internal and external content into its platforms.
Start here
• Evaluate internal mobility:
-
-
• Review the organization’s job architec-
ture:
• Build a culture of hiring from within:
-
• Track learning metrics: -
-
• Refocus the L&D team:
• Rethink the entire L&D technology infra-
structure:
-
• Rethink the corporate university:
-
-
• Manage the employment brand:
-
-

38.
Old rules New rules
Employees are told what to learn by their managers
or the career model
Employees decide what to learn based on their
Careers go “up or out” Careers go in every direction
Managers direct careers for people
leaders and others
Corporate L&D owns development and training
Corporate L&D curates development and creates a
useful learning experience
People learn in the classroom and, sometimes,
online
People learn all the time, in micro-learning, courses,
classrooms, and groups
The corporate university is a training center
The corporate university is a “corporate commons,”
bringing leaders and cross-functional groups
together
Learning technology focuses on compliance and
course catalog
Learning technology creates an always-on,
collaborative, curated learning experience
Learning content is provided by L&D and experts
Learning content is provided by everyone in the
organization, and curated by employees as well as
HR
Credentials are provided by universities and
through credentials
Credentials come in the form of “unbundled
many ways
2017 Deloitte Global Human Capital Trends

40.
Bill Pelster, Deloitte Consulting LLP | bpelster@deloitte.com
Bill Pelster has more than 25 years of industry and consulting experience. In his current role,
Pelster is responsible for leading the Bersin by Deloitte Research and Products practice and
is a senior advisor to the Integrated Talent Management practice. A well-respected speaker
and author, he has recently led, supported, or authored key research pieces including Talent
2020, Global Human Capital Trends, and The Leadership Premium. In his previous role as
of Deloitte professionals, and was one of the key architects of Deloitte University, Deloitte’s
$300 million learning facility outside Dallas. Pelster is a former US board member for Deloitte
Consulting LLP.
Dani Johnson, Bersin by Deloitte, Deloitte Consulting LLP
danjohnson@deloitte.com
Dani Johnson has spent the majority of her career writing about, conducting research in,
designing, and consulting on human capital practices. Johnson led the Human Resource
Competency Study with the University of Michigan and six other professional organizations
around the world, and co-authored the resulting book, HR Competencies: Mastery at the
Intersection of People and Business (Society for Human Resource Management, 2008).
Jen Stempel, Deloitte Consulting LLP | jstempel@deloitte.com
Jen Stempel has more than 20 years of experience in corporate learning. She leads Deloitte’s
Americas Learning Solutions practice and the US Learning Advisory practice, working with
large, complex, global companies to help them optimize their learning functions and realize
and business strategy alignment. Stempel is a frequent writer and speaker on learning and
talent topics.
Bernard van der Vyver, Deloitte Consulting BV | bevandervyver@deloitte.com
Bernard van der Vyver is a leading advisor on human capital matters, focusing on learning
the development of people, van der Vyver brings a unique strength to the HR domain. As
Deloitte’s global Learning Solutions leader, he aspires to grow and strengthen the global
learning community by leveraging the organization’s knowledge and expertise to deliver
learning solutions that create unique value for clients.
AUTHORS
CONTRIBUTORS
Jason Galea, Greg Stoskopf
2017 Deloitte Global Human Capital Trends

42.
Talent sourcing and recruitment face tremendous pressure. Talent and skill short-
ages are widespread. Employees are demanding new careers and career models. And
-
laboration, crowds, and the sharing economy—are reshaping the workforce. Leading
companies are turning the open talent economy into an opportunity by embracing
balance-sheet talent sources.
• Attracting skilled resources is no longer simply the responsibility of HR. It now
stands as a top concern of business leaders, ranking third in our survey this year.
•
very important.
Talent acquisition
F
INDING
-
-
BUILDING A STRATEGIC AND
DIGITAL EMPLOYMENT BRAND
-
-
-
-
-
1
-
-
-
-
2017 Deloitte Global Human Capital Trends

45.
Rewriting the rules for the digital age
-
-
9
FROM CREDENTIALS TO SKILLS
-
-
-
-
-
11
-
-
-
-
-
12
OPTIMIZING SOURCING CHANNELS
-
In the open talent
economy, technology
allows talent to move
more freely than
before—from role to
role, within and outside
the enterprise, and
across organizational
and geographic
boundaries.

49.
Rewriting the rules for the digital age
Figure 4. Talent acquisition: Old rules vs. new rules
Old rules New rules
Recruiters continuously expand their use of social
media sites for sourcing, including Twitter, Facebook,
Glassdoor, Pinterest, and Quora, in addition to
LinkedIn
Employment brand is viewed as a marketing strategy
Employment brand has a complete strategy, reaching
into all possible candidate pools and channels
Recruiters run the recruiting process
Recruiters partner with hiring managers throughout
the search process, leveraging their networks,
cultural needs, and success criteria
Job descriptions communicate what the organization
demands from the potential employee
Job descriptions focus on the needs of the
candidates—a tactic that yields three times as many
highly rated applicants*
An applicant tracking system is the only required
talent acquisition technology
Companies have talent acquisition technology
platforms that manage sourcing, video interviewing,
interview management, candidate relationship
management, and onboarding
for the enterprise
The candidate and hiring manager are front and
center in talent acquisition processes, tailoring the
candidate experience around the moments that
matter in the talent acquisition journey with the
organization
* Andre Lavoie, “How to attract the best talent with your job descriptions,” Aberdeen Essentials, September 25,
2015, www.aberdeenessentials.com/hcm-essentials/how-to-attract-the-best-talent-with-your-job-descriptions/.
FAST FORWARD
Accelerating digital, video, and cognitive technologies and ever-increasing transparency
continuing to focus on sourcing and selection, recruiters are now relationship builders
and managers. They are looking to enable a positive candidate experience for new
employees—a task that requires both new responsibilities and new skills.
Savvy recruiters will continue to embrace new TA technologies and hone their
relationship-building skills. Indeed, this is the promise of cognitive recruiting. As
AI and other technologies take over the basic, time-consuming tasks of sourcing
candidates, human jobs will shift. A recruiter in this new world can add value by
building psychological and emotional connections with candidates and constantly
strengthening the employment brand.

51.
Rewriting the rules for the digital age
Michael Stephan, Deloitte Consulting LLP | mstephan@deloitte.com
Michael Stephan is the global leader for Deloitte’s HR Transformation practice. He develops
and integrates HR service delivery models across the operations and technology spectrum,
with a focus on optimizing HR service delivery around the world. His global consulting
experience includes HR strategy, HR operating model design and implementation, HR
business process outsourcing (BPO), global technology deployment, and enterprise
transition management.
David Brown, Deloitte Touche Tohmatsu | davidbrown@deloitte.com.au
David Brown leads the Human Capital practice in Australia. He has over 30 years’ experience
in the human capital space in both corporate HR and advisory roles, including considerable
specializes in HR strategy and execution, strategic change, workforce productivity and
engagement, and talent management and development.
Robin Erickson, Bersin by Deloitte, Deloitte Consulting LLP | rerickson@deloitte.com
she draws on her deep experience in talent strategies consulting and related research for
in organizational communication and change, a master’s degree in communication from
Northwestern University, a master’s degree in theology from Northern Seminary, and a
bachelor of arts degree from the University of Chicago.
AUTHORS

53.
Millennials, employees expect a productive, engaging, enjoyable work experience.
Rather than focus narrowly on employee engagement and culture, organizations are
developing an integrated focus on the entire employee experience, bringing together
all the workplace, HR, and management practices that impact people on the job. A
employee self-service tools is helping HR departments understand and improve this
experience. Through new approaches such as design thinking and employee journey
maps, HR departments are now focusing on understanding and improving this com-
plete experience and using tools such as employee net promoter scores to measure
employee satisfaction.1
• Organizational culture, engagement, and employee brand proposition remain top
priorities in 2017; employee experience ranks as a major trend again this year.
•
-
• Fifty-nine percent of survey respondents reported they were not ready or only
somewhat ready to address the employee experience challenge.
The employee experience
Culture, engagement, and beyond
A
PRODUCTIVE,
-
2
-
-
3
Global Human Capital Trends
-
2017 Deloitte Global Human Capital Trends

56.
Rewriting the rules for the digital age
4
-
5
-
-
-
THE GROWING NEED FOR A
HOLISTIC SOLUTION
-
-
-
-
-
-
-
-
-
Companies need a new approach—one that builds
on the foundation of culture and engagement to
focus on the employee experience holistically,
considering all the contributors to worker
satisfaction, engagement, wellness, and alignment.

62.
Rewriting the rules for the digital age
Old rules New rules
surveys
life at work, requiring constant feedback, action, and
monitoring
Culture is a topic on the company website and
through behavior
Company uses tools and behaviors to measure, align,
and improve culture during change, M&A, and other
major initiatives
Companies have a series of HR leaders across
recruiting, learning, rewards, engagement, and other
HR services
Companies have someone responsible for the
complete employee experience, focused on
employee journeys, experiences, engagement, and
culture
with a focus on benchmarking and fairness
Wellness and health programs are focused on safety
and managing insurance costs
Companies have an integrated program for
employee well-being focused on the employee, her
family, and her entire experience at life and work
Rewards are designed to cover salary, overtime,
programs
Employee self-service is viewed as a technology
platform that makes it easy to complete HR
transactions and reports
The employee experience platform is designed,
mobile, and includes digital apps, prescriptive
solutions based on employee journeys, and ongoing
communications that support and inspire employees
FAST FORWARD
increasing transparency (“What does Glassdoor say about us?”), and the rising demand
for talented professionals and workers with fast-changing skills, employee experience
will become an increasingly important dimension of competing for and engaging
your workforce. Employee brand and reputation—the story that employees in the
through net promoter tools, social media monitoring, and customer segmentation,
so will HR rigorously monitor the health and productivity of its employees. Real-time
feedback tools will explode as pulse surveys and always-on feedback systems become
the experience of contractors, contingent, and gig workers too.

64.
Rewriting the rules for the digital age
Josh Bersin, Bersin by Deloitte, Deloitte Consulting LLP | jbersin@deloitte.com
Josh Bersin founded Bersin & Associates, now Bersin by Deloitte, in 2001 to provide research
and advisory services focused on corporate learning. He is a frequent speaker at industry
events and a popular blogger. Bersin spent 25 years in product development, product
management, marketing, and sales of e-learning and other enterprise technologies. He has
a BS in engineering from Cornell, an MS in engineering from Stanford, and an MBA from the
Haas School of Business at the University of California, Berkeley.
Jason Flynn, Deloitte Consulting LLP |
Jason Flynn leads Deloitte’s global Rewards practice. He has more than 20 years of consulting
experience, helping multinational organizations design, deliver, communicate, and manage
total rewards programs to support their business and talent strategies. Flynn’s broader HR
consulting experience includes supporting talent management, HR transformation, and other
human capital initiatives.
Art Mazor, Deloitte Consulting LLP | amazor@deloitte.com
Art Mazor is Deloitte’s global leader for HR Service Delivery and a thought leader in HR
transformation strategy. He collaborates with global clients to achieve business impact with
a focus on transforming human capital strategies, programs, and services. With a balance
of strategic planning, operating model and organization design, process transformation,
technology deployment, governance, and change management, Mazor helps generate
tangible results through innovative and pragmatic solutions.
Verónica Melián, Deloitte SC | vmelian@deloitte.com
Verónica Melián is the Human Capital practice leader for Deloitte LATCO and the global
leader of Deloitte’s Culture practice. She has more than 20 years of consulting experience,
specializing in large-scale global transformation projects. Melián’s work focuses primarily on
culture change, leadership alignment, communication, HR, and talent strategies.
AUTHORS
CONTRIBUTORS
David Brown, Alyson Daichendt, Robin Erickson, David Mallon, Yves van Durme

66.
evaluate, and recognize employee performance. Today, with much initial experimen-
tation, continuous performance management practices are being deployed on a wide
scale. While not all the tools are in place at every organization, the new practices are
management, check-ins, and continuous feedback are becoming common, and new
models of evaluation and rewards are being adopted next.
• The redesign of performance management is picking up speed: 79 percent of ex-
calling the problem “very important.”
• Company capabilities to implement performance management have improved.
Our research shows organizations are 10 percent more capable than they were
in 2015, and most are heavily focused on retraining leaders to implement agile,
developmental management approaches.
• The impact of these new performance practices is high: 90 percent of companies
that have redesigned performance management see direct improvements in en-
the quality of conversations between employees and managers going up.1
Performance management
Play a winning hand
T
HE -
-
AS WORK SHIFTS, SO DOES PM
-
Global Human Capital Trends
2017 Deloitte Global Human Capital Trends

72.
Start here
• Identify a strategy and philosophy for
PM:
-
• Look to peers: -
-
-
• See what is working:
-
-
• Tailor PM to strategic and organizational
needs:
• Upskill managers in coaching skills: -
-
-
• Put it all together:
FAST FORWARD
In the future, leading companies will create a continuous, highly agile process
among employees and teams, as well as among employees and leaders. Many will
take advantage of new software tools that integrate PM into daily work and use the
greater quantity and richer quality of data now available. The dreaded end-of-year
and managers.
These changes are not merely new processes, but rather new organizational muscles.
As such, they will take time to develop and need constant exercise to maintain. But
stages of transformation become more natural over time. As trust grows, feedback
becomes more direct and constructive, and changes are accepted.
2017 Deloitte Global Human Capital Trends

73.
Rewriting the rules for the digital age
Old rules New rules
Performance appraisals and goal-setting conducted
once per year
Check-ins conducted quarterly or more frequently;
regular goal-setting occurs in an open, collaborative
process
Feedback collected by manager at end of year
Feedback collected continuously and easily reviewed
at end of year (often through apps and mobile tools)
achievement
Goals made public and transparent with increased
focus on team achievement
Employees evaluated by their manager Managers also evaluated by their employees
Employees force-ranked on a quantitative scale
Employees rated on a qualitative scale; rankings
considered, not forced
equity; bands based on performance ratings
Compensation levels more transparent, more
frequently discussed, and focused more on pay for
performance than on equity
Managers focused on evaluating performance
Managers focused on coaching and developing
people
One leader evaluates each individual in a qualitative,
opinion-based process evaluation; evaluation draws heavily on data
Process considered to be a burden and waste of time Process is agile, faster, continuous, and lighter

75.
Rewriting the rules for the digital age
Nathan Sloan, Deloitte Consulting LLP | nsloan@deloitte.com
States, and oversees the US Organization Strategies, Talent Strategies, Strategic Change,
and Functional Transformation practice areas. He works with global companies to
determine the organizational structures, talent programs, and HR priorities required to
implement their business strategies. He is also the US Human Capital leader for Retail and
Wholesale Distribution.
Dimple Agarwal, Deloitte MCS Limited | dagarwal@deloitte.co.uk
Dimple Agarwal is the global leader of Organization Transformation and Talent for
the Human Capital practice. She consults at the C-suite level on operating model and
organizational design, HR and talent strategies, leadership strategies and development,
merger integration, and major transformation programs. Her 20-plus years of consulting
experience includes work in the United Kingdom, Netherlands, France, Switzerland, India,
Stacia Sherman Garr, Bersin by Deloitte, Deloitte Consulting LLP
sgarr@deloitte.com
Stacia Sherman Garr is responsible for research on human resources, talent strategy,
integrated talent management, performance management, career management, diversity
and inclusion, employee recognition, competencies, and workforce planning. Garr holds an
MBA from the University of California, Berkeley, a master’s degree from the London School
Woman’s College.
Karen Pastakia, Deloitte Canada | kapastakia@deloitte.ca
Karen Pastakia has more than 20 years’ experience in HR and talent consulting. Currently,
she leads Deloitte’s Human Capital practice in Toronto. She works with clients to ensure
alignment between their HR and talent objectives and investments and the overall business
strategy. Pastakia is also one of Deloitte Canada’s marketplace inclusion leaders and has
been intimately involved in the evolution of Deloitte University globally.
AUTHORS
CONTRIBUTORS
Maren Hauptmann

82.
Rewriting the rules for the digital age
• Foster risk-taking and experimentation
through leadership strategy:
-
FAST FORWARD
Great leaders have always been expected to succeed in the context of ambiguity. Now,
they face even greater pressures as the speed of technology accelerates. The role that
leaders play will continue to change, becoming even more digital-focused and team-
centric. A focus on organizational practice, including culture and organizational design,
will become an ever-more important part of leadership development. Despite this
more challenging environment, leaders will be asked to execute at a higher level—and
ensure that their organizations do not lag behind in the digital transformation.
• Move beyond traditional leadership
training: -
-
-

83.
Old rules New rules
experience, tenure, and business performance
Leaders are assessed early in their careers for agility,
creativity, and ability to lead and connect teams
Leaders must “pay their dues” to work their way up
the leadership pipeline
responsibility to test and develop their leadership
skills
Leaders are expected to know what to do and bring
judgment and experience to new business challenges
Leaders are expected to innovate, collaborate, and
use client teams, crowdsourcing, and hackathons to
Leadership development focuses on assessments,
training, coaching, and 360-degree development
programs
Leadership development focuses on culture, context,
knowledge-sharing, risk-taking, and exposure to
others
Leaders are assessed and developed based on
behavior and style
Leaders are assessed and developed based on
thinking patterns and problem-solving ability
Leaders are developed through training and
professional development programs
Leaders are developed through simulation, problem
solving, and real-world projects
Diversity of leadership is considered a goal and
important benchmark to measure
Leaders are assessed and trained to understand
unconscious bias, inclusion, and diversity in their role
is sacrosanct in the organization
Leadership is considered a role that all play;
everyone has opportunities to become a leader
Leaders lead organizations and functions Leaders lead teams, projects, and networks of teams
2017 Deloitte Global Human Capital Trends

85.
Anthony Abbatiello, Deloitte Consulting LLP | aabbatiello@deloitte.com
Anthony Abbatiello is the global leader of Deloitte’s Leadership practice. He specializes in
leadership strategy and development, succession management, and HR/talent strategy.
Abbatiello has led industry and functional human capital practices and is a respected global
thought leader as a SHRM Trendsetter and a resident talent blogger for .
He advises senior global clients on executive readiness, transformational leadership, and
building future leadership pipelines.
Margorie Knight, Deloitte MCS Limited | marjknight@deloitte.co.uk
Marjorie Knight was the co-founder and chairman of Kaisen Consulting, a boutique global
leadership consultancy acquired by Deloitte in 2015. As a seasoned business psychologist,
she specializes in the assessment, coaching, and development of C-suite leaders and high
potentials and in supporting organizations with succession planning. Based in the United
Kingdom, Knight has over 25 years’ experience working with leaders in more than 25
countries across a wide range of sectors.
Stacey Philpot, Deloitte Consulting LLP | sphilpot@deloitte.com
Stacey Philpot is a principal with Deloitte’s Leadership practice. She specializes in
implementing cutting-edge programs and processes that help senior executives lead,
innovate, and adapt to volatile markets and changing industries. As an organizational
psychologist, her areas of expertise are leadership development, succession planning, and
talent strategy implementation. Philpot is the author of several book chapters and articles
and a frequent speaker on women’s leadership topics.
Indranil Roy, Deloitte Consulting Pte Ltd | indroy@deloitte.com
advisor on innovation and digital, leadership, strategy, organization, and culture. He has
India, Korea, the United Kingdom, and the United States across a wide range of sectors,
AUTHORS
CONTRIBUTORS
John Crump, Andrea Derler, Karen Pastakia, Mohinish Sinha
2017 Deloitte Global Human Capital Trends

87.
HR is undergoing rapid and profound change. Once viewed as a support function
that delivered employee services, HR is now being asked to help lead the digital
transformation sweeping organizations worldwide. We see this change taking place
in three areas:
• Digital workforce: How can organizations drive new management practices
(which we call “digital DNA”1
), a culture of innovation and sharing, and a set of tal-
ent practices that facilitate a new network-based organization?2
• Digital workplace: How can organizations design a working environment that
enables productivity; uses modern communication tools (such as Slack, Work-
place by Facebook, Microsoft Teams, and many others); and promotes engage-
ment, wellness, and a sense of purpose?
• Digital HR: How can organizations change the HR function itself to operate in a
digital way, use digital tools and apps to deliver solutions, and continuously ex-
periment and innovate?
This shift is happening rapidly, as HR leaders are being pushed to take on a larger
role in helping to drive the organization to “be digital,” not just “do digital.”
• Fifty-six percent of companies we surveyed this year are redesigning their HR
programs to leverage digital and mobile tools.
• Fifty-one percent of companies are currently in the process of redesigning their
organizations for digital business models.
• -
gence (AI) technology to deliver HR solutions, and 41 percent are actively building
mobile apps to deliver HR services.
Digital HR
Platforms, people, and work
2017 Deloitte Global Human Capital Trends

92.
Rewriting the rules for the digital age
Old rules New rules
HR departments focus on process design and
harmonization to create standard HR practices
HR departments focus on optimizing employee
productivity, engagement, teamwork, and career
growth
HR selects a cloud vendor and implements out-of-
the-box practices to create scale develops apps, and leverages the platform for scale
HR technology teams focus on ERP implementation
and integrated analytics, with a focus on “ease of use”
HR technology team moves beyond ERP to develop
digital capabilities and mobile apps with a focus on
“productivity at work”
HR centers of excellence focus on process design and
process excellence
HR centers of excellence leverage AI, chat, apps, and
other advanced technologies to scale and empower
employees
HR programs are designed for scale and consistency
around the world
HR programs target employee segments, personae,
maps relevant to their jobs and careers
HR focuses on “self-service” as a way to scale services
and support
HR focuses on “enablement” to help people get work
HR builds an employee “self-service portal” as a
transactional needs and programs
HR builds an integrated “employee experience
platform” using digital apps, case management, AI,
and bots to support ongoing employee needs
FAST FORWARD
HR has a critical opportunity to help lead the transformation to a digital enterprise.
In the next several years, HR teams that embrace digital platforms to take up the
dual challenge of transforming HR operations on the one hand, and transforming
the workforce and the way work is done on the other, will be game changers. HR
leaders who “lean into” new technologies, platforms, and ways of working, and who
explore and invest in enabling agility through constant reinvention, will be strongly
positioned to have an impact on business results and employee experience.

94.
Rewriting the rules for the digital age
Erica Volini, Deloitte Consulting LLP | evolini@deloitte.com
businesses optimize their performance. Throughout her 20-year consulting career, Volini
has worked with organizations to determine how best to deliver HR services, which enable
Pascal Occean, Deloitte Canada | poccean@deloitte.ca
Pascal Occean leads Deloitte’s Canadian HR Transformation practice. With more than
18 years of experience serving domestic and global clients, Occean specializes in all
aspects of HR transformation, including strategy, service delivery, process reengineering,
outsourcing, service center transitions, implementations, and support. Occean also has
in-depth knowledge of HR technology implementations for solutions such as SAP, Oracle,
and Workday.
Michael Stephan, Deloitte Consulting LLP | mstephan@deloitte.com
Michael Stephan is the global leader for Deloitte’s HR Transformation practice. He develops
and integrates HR service delivery models across the operations and technology spectrum,
with a focus on optimizing HR service delivery around the world. His global consulting
experience includes HR strategy, HR operating model design and implementation, HR
business process outsourcing (BPO), global technology deployment, and enterprise
transition management.
Brett Walsh, Deloitte MCS Limited | bcwalsh@deloitte.co.uk
Brett Walsh is Deloitte’s global Human Capital leader and a global lead client service
partner. He has over 25 years of international experience consulting with executives on
HR transformation, HR technologies, and the “future of work.” A frequent speaker and
author, Walsh has an MBA from Warwick University and is a fellow of the Institute of
Business Consultants.
AUTHORS
CONTRIBUTORS

96.
People analytics in HR is undergoing a seismic shift. Driven by the widespread adop-
tion of cloud HR systems, companies are investing heavily in programs to use data
for all aspects of workforce planning, talent management, and operational improve-
ment. People analytics, a discipline that started as a small technical group that ana-
lyzed engagement and retention, has now gone mainstream. Organizations are
redesigning their technical analytics groups to build out digitally powered enterprise
analytics solutions. These new solutions, whether developed internally or embedded
in new digital solutions, are enabling organizations to conduct real-time analytics at
the point of need in the business process. This allows for a deeper understanding of
issues and actionable insights for the business.
• While 71 percent of companies see people analytics as a high priority in their orga-
nizations (31 percent rate it very important), progress has been slow. The percent-
age of companies correlating HR data to business outcomes, performing predic-
tive analytics, and deploying enterprise scorecards barely changed from last year.
• Analytics is being applied to a wide range of business challenges: Recruiting remains
the No. 1 area of focus, followed by performance measurement, compensation,
workforce planning, and retention. We see an explosive growth in the use of orga-
nizational network analysis (ONA) and the use of “interaction analytics” (studying
employee behavior) to better understand opportunities for business improvement.
• -
cent report they have usable data; only 9 percent believe they have a good under-
standing of which talent dimensions drive performance in their organizations; and
only 15 percent have broadly deployed HR and talent scorecards for line managers.
People analytics
Recalculating the route
2017 Deloitte Global Human Capital Trends

101.
Rewriting the rules for the digital age
FAST FORWARD
Over the next few years, the number of data sources will continue to rise, leading
to a fusion of external and internal data in predicting employee behavior. At leading
companies, analytics will become even more interdisciplinary, along the lines of ONA.
Eventually, people analytics will be fully integrated into systems and always in the
background, rather than a separate source of information.
Going forward, analytics technology will have the capability to deliver increasingly
personalized recommendations. Due to the sensitive nature of some people analytics
programs, organizations will likely need to become far more serious about data
public disclosure of private information on the organization and its employees.
•
the organization:
-
-
• Develop a two- to three-year roadmap for
investment in analytics programs:
• -
-
• Integrate HR, organizational, and exter-
nal data:
-
-

102.
Old rules New rules
People analytics is viewed as an HR team focused on
advanced analytics within HR
People analytics is viewed as a business analytics
team that works across the business to drive
business results
Analytics focuses on HR topics such as retention,
engagement, learning, and recruitment metrics
Analytics focuses on business problems such as sales
retention, fraud, accident patterns, and other
operational needs
The organization makes a business case for better
data integration, quality, and tools
The organization has already committed to accurate
and integrated data, and has tools and processes to
ensure quality and ease of analysis
The people analytics team has a strong
understanding of HR data
The people analytics team understands HR data,
relationships with all the other analytics groups in
the company
The people analytics team lives in HR operations and
reports to HR technology, or in functional areas
The people analytics team operates at a senior level,
reports to the CHRO, and serves business leaders
across the company
The people analytics team is a small set of technical
experts with data management and statistical skills
The people analytics team is a multidisciplinary
team, with a focus on business consulting, visual
communications, and problem solving
primary focus is the development of models and
data warehouses
People analytics is a consulting function that helps
business leaders solve problems
People analytics focuses on employees
People analytics focuses on the entire workforce,
including employees and contingent labor
The people analytics team focuses heavily on
engagement survey data and employee happiness
and culture
The people analytics team moves beyond
engagement to understand the detailed drivers
of engagement and builds culture models to
understand what drives the workforce
2017 Deloitte Global Human Capital Trends

104.
Laurence Collins, Deloitte MCS Limited | lcollins@deloitte.co.uk
Laurence Collins leads the United Kingdom’s HR Digital, Workforce Planning and Analytics
practices, helping clients drive productivity and performance in the context of the “future
of work.” He focuses on applying a variety of approaches such as predictive analytics,
robotics, and strategic workforce planning for improved business impact. His work includes
reimagining the role of HR and linking the resulting outcomes of new capabilities back to the
economic contribution of human capital.
Dave Fineman, Deloitte Consulting LLP |
Dave Fineman leads the HR Transformation People Analytics and Workforce Planning
program in the United States. In this role, he collaborates with Deloitte colleagues from
and delivering solutions that build capability, deploy technology, and advance people
analytics and workforce planning capabilities within client organizations. In addition to his
client work, Fineman has presented people analytics and workforce planning topics at
sessions. He has an MBA from the Amos Tuck School of Business at Dartmouth College and a
BA from Clark University.
Akio Tsuchida, Deloitte Tohmatsu Consulting Co., Ltd | akitsuchida@tohmatsu.co.jp
Akio Tsuchida is Deloitte’s Human Capital leader for Japan. With more than 20 years of
human capital consulting experience, Tsuchida has rich expertise in total rewards and
performance management, executive compensation, workforce planning, and talent
management. He has led large-scale business transformation projects related to cross-
border M&A, post-merger integration, corporate restructuring, and globalization. He has a
master’s degree in labor relations and human resources from Michigan State University.
AUTHORS
CONTRIBUTORS
Madhura Chakrabarti, Stavros Demetriou, Jim Guszcza, John Houston, Luk Smeyers
2017 Deloitte Global Human Capital Trends

106.
Diversity and inclusion has become a CEO-level issue around the world. The digital
organization of today, which operates as a network of teams, thrives on empower-
ment, open dialogue, and inclusive working styles. Leading organizations now see
diversity and inclusion as a comprehensive strategy woven into every aspect of the
talent life cycle to enhance employee engagement, improve brand, and drive perfor-
mance. The era of diversity as a “check the box” initiative owned by HR is over. CEOs
must take ownership and drive accountability among leaders at all levels to close the
gap between what is said and actual impact.
• -
ority has risen by 32 percent compared with our 2014 survey.
• Over two-thirds (69 percent) of executives rate diversity and inclusion an impor-
tant issue (up from 59 percent in 2014).
• Thirty-eight percent of executives report that the primary sponsor of the compa-
Diversity and inclusion
The reality gap
I
N
-
1
-
-
2
-
-
-
2017 Deloitte Global Human Capital Trends

112.
-
-
• Move beyond HR: -
-
FAST FORWARD
Old models of diversity and inclusion are undergoing change, and this trend is
expected to accelerate. As employee demands shift and diversity receives greater
large Baby Boomer population ages, the need to broaden the focus on diversity
and inclusion to account for the elderly in the workplace will increase. In inclusive
organizations, the way people operate will shift, and the everyday language of the
business will change.
•
-
-
2017 Deloitte Global Human Capital Trends

113.
Rewriting the rules for the digital age
Old rules New rules
Diversity is considered a reporting goal driven by
compliance and brand priorities
Diversity and inclusion is a CEO-level priority and
considered important throughout all levels of
management
Work-life balance is considered a challenge for
employees to manage, with some support from the
organization
Work-life balance, family, and individual wellness are
all considered part of the total employee experience
Companies measure diversity through the
attributes such as gender, race, nationality, or age
Companies measure inclusion, diversity, and lack of
bias in all recruitment, promotion, pay, and other
talent practices
concepts of “diversity of thought,” also addressing
Leaders are promoted on “merit” and experience
“Merit” is unpacked to identify built-in biases; leaders
are promoted on their ability to lead inclusively
Diversity and inclusion is a program of education,
training, and discussion
Diversity and inclusion goes beyond education to
focus on debiasing business processes and holding
leaders accountable for inclusive behavior
Companies regularly report progress on diversity
measures
Companies hold managers accountable for creating
an inclusive culture, using metrics to compare them
against each other